Thinking Long Term in the Short Term

VeNita Schnebele’s mother-in-law bought long-term care insurance and thought she was getting a product that would help her weather her old age without burdening her family. When the older woman needed full-time nursing care, however, her family discovered that her policy had a significant flaw.

“The best nursing facilities cost $5,000 to $8,000 a month, and the policy paid $2,400 a month—after a six-month waiting period,” recalls Schnebele, an area president in Eden Prairie for Illinois-based Arthur J. Gallagher Risk Management Services, Inc. The policy left the family scrambling to find a way to pay for care; Schnebele and her husband ultimately paid for the service that was required until his mother’s death just a few weeks later.

Most Americans will eventually need some kind of elder care, whether it’s occasional home health care or a residential nursing facility. While no one welcomes the loss of independence, most people want to get whatever care they need with minimal stress—both emotional and financial—to the people they love.

"Long-term care insurance can preserve your assets, your family relationships, and your dignity."

If that describes you, it’s important that you think now about long-term care insurance. Long-term care insurance is more affordable while you’re young. What’s more, careful consideration now, while you’re still healthy and capable, can help you decide whether you need the coverage, what policy features are important to you, and how you’ll pay for them.

Deciding What You Need

“Whether you’re going to buy long-term care insurance or not, everybody needs a long-term care plan,” says Debra C. Newman, president of Newman Long Term Care, a Bloomington-based wholesale and retail brokerage for long-term care insurance. “As a family, you should decide how you’ll care for family members. It should be a decision that everyone discusses.”

There are a variety of options for elders who need ongoing help, each with their own advantages and drawbacks. One choice is to ask a family member to provide care. There are 44.4 million family caregivers in the United States, according to the National Alliance for Caregiving and AARP (formerly the American Association of Retired Persons). Though most care for loved ones and are glad to be of service, they also find caregiving to be a source of physical, financial, and emotional strain.